Kotlin's privatisation to be completed this year

2004-04-05

Kotlin, a fruit and vegetable processing plant, increased sales in 2003 by 17% year-on-year, up to PLN 100m (€euro;22.7m), and doubled its operating profit from over PLN 2m (€euro;0.4m) in 2002 to over PLN 4m (€euro;0.9) last year. Kotlin, in which the Norwegian company Orkla Foods International is a strategic investor with a 70% stake, has recently completed the process of adjusting its production lines to EU standards. Kotlin ranks among the most important presences on the market with regard to ketchup, tomato paste and tomato sauces. Sales of jams and ready-to-eat meals account for 60%. The most notable expansion in the last two years involved sales of jam. However, in 2004 this trend will be checked by an increase in the price of sugar after Poland's EU accession.
According to Jacek Dziekonski, CEO, the privatisation of Kotlin should be wrapped up this year. Dziekonski told Puls Biznesu that: "We expect the Finance Ministry to invite potential investors to bid for the remaining 20% stake in the company in May 2004". Kotlin's CEO estimates the remaining State share to be approximately PLN 4-8m (€euro;0.9-1.8).